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#1488048 - 12/31/10 05:53 PM Servicemember notice - correct language.
Burgess Offline
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Servicemembers notice. i see links to HUD http://www.hud.gov/offices/adm/hudclips/forms/files/92070.pdf
for a sample notice.
But do i understand correctly that the sample notice is incorrect and should be changed - the 90 days becomes 9 months and the 6% rate language should add "effective for a year after leaving the service"??
Is there some sample of this that we can use?
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#1488123 - 12/31/10 07:29 PM Re: Servicemember notice - correct language. Burgess
ahkcompliance Offline
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We made those changes last year when the provisions were passed. We have been examined and they looked for those changes to make sure we were compliant with them. I have not seen anything from HUD.

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#1488251 - 01/01/11 08:46 PM Re: Servicemember notice - correct language. ahkcompliance
ahou Offline
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Don't these changes sunset after 12-31-10?
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#1488314 - 01/03/11 03:06 PM Re: Servicemember notice - correct language. ahou
John Burnett Offline
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No. The president signed on 12/29 the "Helping Heroes Keep Their Homes Act" which extended the 90 days ==> 9 months changes through 12/31/12.

The provision that extended the 6% cap on mortgage and deed of trust loans to the term of service plus one year following service is permanent. It only applies to mortgage and deed of trust loans.
Last edited by John Burnett; 01/03/11 03:07 PM.
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#1488321 - 01/03/11 03:27 PM Re: Servicemember notice - correct language. John Burnett
Burgess Offline
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So (why is this so difficult for me to get through my head) the sample notice on the HUD website is wrong. I need to amend it by:
1. substituting 9 months for 90 days. and
2. saying something about this being temp thru 12.31.2012

BUT

I don't change the language about the 6% being effective during military service, since the 1 year thereafter language only applies to mortgage loans.
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#1488441 - 01/03/11 05:30 PM Re: Servicemember notice - correct language. Burgess
John Burnett Offline
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Uh, HUD is concerned with mortgages, right? So yes, the one-year addition protection language would apply.
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#1488458 - 01/03/11 05:51 PM Re: Servicemember notice - correct language. John Burnett
Burgess Offline
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sO - I guess we would change the notice to read:
• The SCRA states that a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above 6 percent
during the period of military service AND FOR ONE YEAR AFTER LEAVING THE SERVICE. • The SCRA states that in a legal action to enforce a debt against real estate that is filed during, or within NINE MONTHS after the servicemember’s military service, a court may stop the proceedings for a period of time, or adjust the debt. In addition, the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during, or within NINE MONTHS after the servicemember’s military service unless the creditor has obtained a court order approving the
sale, foreclosure, or seizure of the real estate.
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#1488604 - 01/03/11 08:36 PM Re: Servicemember notice - correct language. Burgess
ahkcompliance Offline
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This is what our notice says...

The SCRA states that a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above 6 percent
during the period of military service. In the case of a mortgage loan, the 6 percent cap extends to one year following the end of the military service.

We also stay 9 months as well.
Last edited by ahkcompliance; 01/03/11 08:37 PM.
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#1488824 - 01/04/11 02:00 PM Re: Servicemember notice - correct language. ahkcompliance
Burgess Offline
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Ahkcompliance - thanks, that was what i was looking for, i appreciate it.
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#1489363 - 01/04/11 08:43 PM Re: Servicemember notice - correct language. Burgess
jross Offline
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While reviewing our SCRA Policy I came across this statement,

The SCRA requires creditors to provide notice to all homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents under the SCRA within 45 days from the date that a missed payment was due and includes a required format.

Are we required to give this notice to all homeowners or just those who have given us notice that they are on active duty?
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#1489476 - 01/04/11 09:42 PM Re: Servicemember notice - correct language. jross
ahkcompliance Offline
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We give to all since we don't know who may or may not be on active duty.

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#1489502 - 01/04/11 09:59 PM Re: Servicemember notice - correct language. ahkcompliance
jross Offline
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We do not have many military customers (less than 5) and have only been notified once within the last 10 years. This is all still relatively new to me since we do not use it. That being said, we still need to comply with the law and if we need to make changes now is the best time.
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#1489639 - 01/05/11 01:47 PM Re: Servicemember notice - correct language. jross
Dan Persfull Offline
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You should provide it to all. The purpose of the notice is to notify the consumer of their potential rights under the SCRA if they are a servicemember. Not all servicemembers will notify you they are on active duty so you have no way of knowing which consumers may be covered by the SCRA.
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#1493264 - 01/11/11 07:00 PM Re: Servicemember notice - correct language. Dan Persfull
complygirl Offline
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So is this the correct SCRA notice verbiage for the "9 months" amendment:

" The SCRA states that in a legal action to enforce a debt against real estate that is filed during, or within 9 months after the servicemember’s military service, a court may stop the proceedings for a period of time, or adjust the debt. In addition, the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during, or within 9 months after the servicemember’s military service unless the creditor has obtained a court order approving the sale, foreclosure, or seizure of the real estate." (Emphasis added - just to show specific text that was changed)

Both previous references to 90 days should be updated to 9 months? Just wanted to doublecheck this. Thanks.

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#1493400 - 01/11/11 08:15 PM Re: Servicemember notice - correct language. complygirl
ahkcompliance Offline
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That is correct.

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#1494050 - 01/12/11 06:06 PM Re: Servicemember notice - correct language. ahkcompliance
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Is it really okay to amend the language in the notice if the regulation (12 USC 1701x(c)(5)(A)(ii)(IV)) says to provide a notice "written in plain English by the Secretary of Housing and Urban Development, in consultation with the Secretary of Defense and the Secretary of the Treasury"?

This seems very similar to the requirement to use an unmodified version of FDIC's notice of unlimited insurance coverage even though it currently says IOLTAs are not included.

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#1494740 - 01/13/11 06:02 PM Re: Servicemember notice - correct language. Summer101
John Burnett Offline
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The problem is that HUD isn't the agency that will examine you for compliance, and it's not known for staying on top of this particular issue. Your regulator can cite you for not updating the wording, and make it stick.

As for the IOLTA thing, no agency other than the FDIC will worry about that notice, and the FDIC knows about the problem.
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#1496477 - 01/18/11 06:48 PM Re: Servicemember notice - correct language. John Burnett
NotDoneYet Offline
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I just came across an updated version under HUD and it appears to have the correct language, except the one-yr period doesn't specify mortgage related loans.

http://www.hud.gov/offices/adm/hudclips/forms/files/92070.pdf

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#1496522 - 01/18/11 07:29 PM Re: Servicemember notice - correct language. NotDoneYet
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The expiration date is 7/31/2012 on this new notice, but wasn't it extended to 12/31/2012? Do you think it would be okay to fix the expiration date and add language to the "one year after service" that it applies to mortgage related loans?

On the other hand, how often are notices we are given to use not exactly perfect, but we still use them for safe harbor purposes.
Last edited by jcaldwell; 01/18/11 07:30 PM.
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#1500256 - 01/26/11 01:41 PM Re: Servicemember notice - correct language. NotDoneYet
Sheldon Hendrix Offline
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This morning's ABA newsbytes.

HUD Updates SCRA Notice
The Department of Housing and Urban Development has updated its Servicemembers Civil Relief Act notice -- new form HUD-92070 -- to reflect the expanded protections required by the Housing and Economic Recovery Act and Helping Heroes Keep Their Homes Act. Banks should begin using the new HUD notice immediately. The changes in the new notice are amendments to SCRA’s Section 527 (maximum rate of interest on debts incurred before military service) and Section 533 (mortgages and trust deeds) that provide military members with additional time under each of the two protections.

The new notice must be sent to all homeowners -- even those not in the military -- who are in default on a residential mortgage. It must be sent within 45 days from the date a missed payment was due, unless the homeowner pays the overdue amount before the expiration of the 45-day period.

http://www.hud.gov/offices/adm/hudclips/forms/files/92070.pdf
Last edited by Compliance Rules; 01/26/11 04:13 PM.
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#1500455 - 01/26/11 04:27 PM Re: Servicemember notice - correct language. Sheldon Hendrix
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Between the lines
Is there a Word copy of this anywhere, or do we just have to retype to insert our info?
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#1500508 - 01/26/11 05:11 PM Re: Servicemember notice - correct language. SMQ, CRCM
KC Danimal Offline
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Braincramp - what section of the law requires this notice?
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#1500514 - 01/26/11 05:20 PM Re: Servicemember notice - correct language. SMQ, CRCM
Andy_Z Offline
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We'll have a Word version for you by the end of the day.
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#1500518 - 01/26/11 05:25 PM Re: Servicemember notice - correct language. Andy_Z
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#1500834 - 01/26/11 09:23 PM Re: Servicemember notice - correct language. SMQ, CRCM
Andy_Z Offline
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There is a Word form that you can customize in the "Lender place your name here..." slot and the HUD form itself in PDF which is only really good for showing that the Word form conforms.
Last edited by Andy Z; 01/26/11 09:25 PM.
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